EQB Inc. — Earnings Release 2025

Aug 27, 2025

EQB

News Release

EQB releases Q3 2025 financial results and increases dividend 17% y/y

| Diluted EPS
Adjusted¹
$2.07
(30%) y/y, (10%) q/q | Return on equity
Adjusted¹
10.1% | PPPT³
Adjusted¹
$144.6MM
(20%) y/y, (10%) q/q | Total PCL
Adjusted¹
$34.0MM
74% y/y, 12% q/q | Total capital ratio
15.7%
CET1 ratio
13.3% |
| --- | --- | --- | --- | --- |
| Reported
$1.90
(33%) y/y, (14%) q/q | Reported
9.3% | Reported
$135.2MM
(23%) y/y, (13%) q/q | Reported
$34.0MM
60% y/y, 12% q/q | Common share
dividend declared
$0.55/share
17% y/y, 4% q/q |

TORONTO, August 27, 2025 – EQB Inc. (TSX: EQB) today reported earnings for the three and nine months ended July 31, 2025. Earnings reflected continued growth in loans under management², expanding originations and strong customer engagement in EQ Bank, however an unfavourable macroeconomic landscape and pressure in real estate markets continued to impact EQB earnings in Q3. This manifested in higher credit provisions and corresponding lower expectations for earnings for the remainder of fiscal 2025.

Q3 2025 highlights compared to Q3 2024:

• Adjusted net income¹: $80.3 million, -32% y/y, -15% q/q (reported $73.4 million, -35% y/y, -19% q/q)
• Adjusted revenue¹: $310 million, -5% y/y, -2% q/q (reported $306.1 million, -6% y/y, -3% q/q) with non-interest revenue contributing 18% of total
• Adjusted net interest income (NII)¹: $254 million, -6% y/y & q/q (reported $250 million, -8% y/y & q/q)
• Adjusted net interest margin (NIM)¹,²: 1.95%, -14 bps y/y, -25 bps q/q (reported 1.92%, -17 bps y/y, -28 bps q/q)
• Total AUM + AUA²: $137 billion, +9% y/y, +2% q/q
• EQ Bank customers: +21% y/y, +5% q/q to 586,000
• Book value per share: $82.37, +9% y/y, +2% q/q
• Common share dividends declared: $0.55 per share, +17% y/y, +4% q/q

YTD 2025 (nine months) highlights compared to YTD 2024:

• Adjusted ROE¹: 12.4% (reported 11.6%)
• Adjusted diluted EPS¹: $7.36, -14% y/y (reported $6.88, -16% y/y)
• Adjusted net income¹: $290.7 million, -14% y/y (reported $271.4 million, -16% y/y)
• Total capital ratio: 15.7% and CET1 ratio of 13.3%

"This was a difficult quarter for EQB as we mourned the loss of Andrew Moor. Turning to performance, while not unique to EQB, macroeconomic uncertainty and housing market conditions in Canada continued to weigh on credit performance and interest income," said Marlene Lenarduzzi, who acted as interim President and CEO during the quarter. "However, the resilience of our business model was underscored by clear loan book growth and expanding EQ Bank customer engagement. Our balance sheet is strong, and we are positioned for growth with Chadwick Westlake’s appointment as our next chapter begins."

"It is an incredible privilege to join EQB this week as CEO, and my thanks to Marlene for her exceptional leadership. My focus over the coming months will include listening closely to stakeholders across Canada, sharpening our strategy and moving quickly where Canada’s Challenger Bank will win to our full potential," said Chadwick Westlake, President and CEO. "We have charted our own course for over 50 years by focusing on the long-term, innovating with purpose and delivering for Canadians in ways that matter. That commitment

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remains unchanged. I am confident in our ability to build momentum and seize the opportunities ahead that will create better competition and options for Canadians, with earnings growth and leading returns for our shareholders."

New executive leadership team appointments set stage for clear growth agenda

• Effective August 25, 2025, accomplished bank industry executive Chadwick Westlake became President and CEO and joined the Company's board of directors
• As planned, Marlene Lenarduzzi returned to her role as Chief Risk Officer, having previously served as interim CEO following the death of Andrew Moor in June 2025
• Anilisa Sainani appointed SVP and Chief Financial Officer, effective August 28, 2025; Ms. Sainani brings over two decades of diverse banking experience, most recently with RBC as Chief Operating Officer, CFO Group, and VP Finance, Chief Accountant, and is a nationally recognized financial leader as a CPA Fellow and Canada's Top 40 Under 40 recipient
• David Wilkes appointed to the new role of SVP and Chief Strategy & Growth Officer, effective August 28, 2025; uniquely equipped to deliver on EQB's bold growth agenda, Mr. Wilkes draws on 20 years of experience in banking and strategic leadership, joining EQB in 2022 from McKinsey & Company, where he was a Partner, and has since been a leader in the Bank's finance, strategy, corporate development and M&A, regulatory reporting and productivity functions

EQ Bank welcomes 26,000 new customers, bringing total to 586,000 +21% y/y, 5% q/q

• EQ Bank continued to attract significant new customer interest with signups increasing 13% from Q1 and 7% from Q2; demand deposit growth accelerated, driven by the Notice Savings Account and payroll customer deposits, and overall deposits marked among the strongest q/q growth in the last three years to $9.7 billion
• Continued increase in payroll customers further cements EQ Bank's position as bank of choice and go-to source for innovative banking options
• EQ Bank Card reached a milestone of $1 billion in funds loaded as Canadians continue to embrace the domestic and international convenience of this no-fee, no added FX and interest-bearing prepaid card

Personal Lending portfolio benefits from strong uninsured single-family origination growth, driving uninsured loans under management² to $24.4 billion +8% y/y, 2% q/q

• Single-family uninsured originations increased +30% y/y with strong retention rates despite a complex macroeconomic environment as the Bank maintains its disciplined approach to underwriting, deepens its relationships with broker partners and continues to capture market share
• Decumulation lending (reverse mortgages and insurance lending) grew to $2.7 billion +41% y/y, +8% q/q, representing continued consumer demand and appreciation for differentiated, flexible solutions that support older Canadians including homeowners who wish to live in place on their terms

Commercial Banking portfolio enjoys continued leadership in insured multi-unit residential lending

• The Bank reinforced its focus on multi-unit residential lending in major Canadian cities, maintaining a strong risk profile with more than 80% of commercial loans under management (LUM)² insured under CMHC programs
• CMHC-insured multi-unit residential LUM² grew +30% y/y, +8% q/q to $31.4 billion supported by ongoing demand for rental apartment construction and strong originations
• EQB's insured commercial construction lending portfolio grew +28% y/y, +6% q/q to $3.5 billion with new originations and draws related to construction financing

2

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Provisions align with macroeconomic uncertainty as new formation rates show continued moderation

• EQB’s provision for credit losses (PCL) was $34.0 million in Q3, attributable to macroeconomic uncertainty, alongside delayed resolutions and weaker market values of secured assets
• Net impaired loans increased by $33.3 million in Q3 to $775 million, or 164 bps of total loan assets compared to 156 bps at Q2, 109 bps at Q3 2024; increase was driven by housing market pressure and delayed resolution times, while impaired formations slowed in Q3
• The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 33 bps, compared to 29 bps at Q2 2025 and 26 bps at Q3 2024; the increase in net allowance rate was across all segments and driven by ongoing macroeconomic uncertainty

EQB increases common share dividend by 17% y/y, supported by diligent capital generation and allocation structure

• EQB’s Board of Directors declared a dividend of $0.55 per common share payable on September 30, 2025, to shareholders of record as of September 15, 2025, representing 17% increase from the dividend paid in September 2024

"While earnings and ROE did not meet our expectations in Q3, we were pleased with performance in our core lending markets and the continued momentum in EQ Bank customers and deposit growth," said David Wilkes, Chief Strategy & Growth Officer. "We have strong capital and liquidity, and we have continued to deploy capital where risk-adjusted returns are most favourable, delivering growth in both our uninsured and insured portfolios. With year-to-date financial results in mind, including the elevated PCLs and higher business investment, we are correspondingly reducing our expectations for the remainder of this fiscal year, however our medium-term targets remain consistent."

Analyst conference call and webcast: 10:30 a.m. ET August 28, 2025

Vincenza Sera, EQB Board Chair; Chadwick Westlake, President and CEO; Marlene Lenarduzzi, CRO; and David Wilkes, Chief Strategy & Growth Officer, will host EQB’s third quarter earnings call and webcast. The listen-only webcast with accompanying slides will be available at eqb.investorroom.com. To access the conference call with operator assistance, dial 416-945-7677 five minutes prior to the start time.

1 Adjusted measures and ratios are Non-Generally Accepted Accounting Principles (GAAP) measures and ratios. Adjusted measures and ratios are calculated in the same manner as reported measures and ratios, except that financial information included in the calculation of adjusted measures and ratios is adjusted to exclude the impact of one-time acquisition and integration related costs, and certain items which management determines would have a significant impact on a reader’s assessment of business performance. For additional information and a reconciliation of reported results to adjusted results, see the “Non-GAAP financial measures and ratios” section.
2 These are non-GAAP measures, see the “Non-GAAP financial measures and ratios” section.
3 PPPT represents pre-provision-pre-tax income, a non-GAAP measure of financial performance.

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INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated balance sheet (unaudited)

($000s) As at	July 31 2025	October 31, 2024	July 31, 2024
Assets:
Cash and cash equivalents	485,757	591,641	509,608
Restricted cash	1,218,685	971,987	904,196
Securities purchased under reverse repurchase agreements	1,949,171	1,260,118	1,339,578
Investments	1,731,462	1,627,314	1,806,413
Loans – Personal	32,297,598	32,273,551	32,584,931
Loans – Commercial	14,890,241	14,760,367	15,372,643
Securitization retained interests	999,729	813,719	738,986
Deferred tax assets	19,967	36,104	30,481
Other assets	969,034	899,120	782,900
Total assets	54,561,644	53,233,921	54,069,736
Liabilities and Shareholders’ Equity
Liabilities:
Deposits	36,360,714	33,739,612	33,258,969
Securitization liabilities	12,498,948	14,594,304	14,919,830
Obligations under repurchase agreements	148,623	-	-
Deferred tax liabilities	204,296	177,933	161,025
Funding facilities	1,385,306	946,956	1,803,221
Other liabilities	652,199	636,931	681,213
Total liabilities	51,250,086	50,095,736	50,824,258
Shareholders’ Equity:
Preferred shares	-	-	181,411
Common shares	512,172	505,876	501,594
Other equity instruments	147,360	147,440	147,808
Contributed deficit	(15,034)	(17,374)	(25,801)
Retained earnings	2,656,635	2,483,309	2,432,426
Accumulated other comprehensive income (loss)	2,035	8,555	(3,964)
Total equity attributable to equity holders of EQB	3,303,168	3,127,806	3,233,474
Non-controlling interests	8,390	10,379	12,004
Total equity	3,311,558	3,138,185	3,245,478
Total liabilities and shareholders’ equity	54,561,644	53,233,921	54,069,736

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Consolidated statement of income (unaudited)

($000s, except per share amounts)	Three months ended		Nine months ended
	July 31, 2025	July 31, 2024	July 31, 2025	July 31, 2024
Interest income:
Loans – Personal	463,555	501,420	1,406,262	1,452,673
Loans – Commercial	217,209	256,788	651,317	777,511
Investments	12,899	16,432	38,557	51,187
Other	24,727	32,210	70,009	81,518
	718,390	806,850	2,166,145	2,362,889
Interest expense:
Deposits	334,109	387,208	999,309	1,111,772
Securitization liabilities	122,502	132,810	360,147	391,839
Funding facilities	11,703	12,773	22,015	41,577
Other	34	2,692	187	22,986
	468,348	535,483	1,381,658	1,568,174
Net interest income	250,042	271,367	784,487	794,715
Non-interest revenue:
Fees and other income	24,747	22,561	70,380	59,740
Net gains on loans and investments	521	6,145	3,854	18,267
Gain on sale and income from retained interests	26,468	22,755	71,430	65,341
Net gains on securitization activities and derivatives	4,351	4,410	14,563	4,607
	56,087	55,871	160,227	147,955
Revenue	306,129	327,238	944,714	942,670
Provision for credit losses	33,968	21,274	82,880	59,026
Revenue after provision for credit losses	272,161	305,964	861,834	883,644
Non-interest expenses:
Compensation and benefits	79,791	69,912	230,005	202,242
Other	91,163	80,657	261,394	238,232
	170,954	150,569	491,399	440,474
Income before income taxes	101,207	155,395	370,435	443,170
Income taxes:
Current	13,455	44,083	56,412	115,351
Deferred	14,388	(842)	42,657	5,567
	27,843	43,241	99,069	120,918
Net income	73,364	112,154	271,366	322,252
Dividends on preferred shares	-	2,351	-	7,054
Distribution to LRCN holders	-	-	4,410	-
Net income available to common shareholders and non-controlling interests	73,364	109,803	266,956	315,198
Net income attributable to common shareholders and non-controlling interest:
Common shareholders	73,014	109,538	265,949	314,454
Non-controlling interests	350	265	1,007	744
	73,364	109,803	266,956	315,198
Earnings per share:
Basic	1.91	2.86	6.93	8.24
Diluted	1.90	2.84	6.88	8.17

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Consolidated statement of comprehensive income (unaudited)

($000s)	Three months ended		Nine months ended
	July 31, 2025	July 31, 2024	July 31, 2025	July 31, 2024
Net income	73,364	112,154	271,366	322,252
Other comprehensive income – items that will be reclassified subsequently to income:
Debt instruments at Fair Value through Other Comprehensive Income:
Net change in (losses) gains on fair value	(11,334)	34,658	4,693	59,979
Reclassification of net losses (gains) to income	13,075	(31,278)	1,486	(49,918)
Other comprehensive income – items that will not be reclassified subsequently to income:
Equity instruments designated at Fair Value through Other Comprehensive Income:
Net change in gains on fair value	-	534	868	2,086
Reclassification of net losses (gains) to retained earnings	-	490	(868)	490
	1,741	4,404	6,179	12,637
Income tax expense	(639)	(1,194)	(1,928)	(3,427)
	1,102	3,210	4,251	9,210
Cash flow hedges:
Net change in unrealized gains (losses) on fair value	5,501	(23,284)	(7,688)	(23,553)
Reclassification of net gains to income	(6,954)	(2,844)	(16,315)	(14,608)
	(1,453)	(26,128)	(24,003)	(38,161)
Income tax recovery	3	7,084	6,083	10,366
	(1,450)	(19,044)	(17,920)	(27,795)
Total other comprehensive loss	(348)	(15,834)	(13,669)	(18,585)
Total comprehensive income	73,016	96,320	257,697	303,667
Total comprehensive income attributable to:
Common shareholders	72,666	93,704	252,280	295,869
Other equity and preferred shareholders	-	2,351	4,410	7,054
Non-controlling interests	350	265	1,007	744
	73,016	96,320	257,697	303,667

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Consolidated statement of changes in shareholders' equity (unaudited)

(S000s) Three-month period ended
	Common Shares	Other equity instruments	Contributed Deficit	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
					Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning of period	510,973	147,360	(19,177)	2,607,001	5,147	(2,803)	2,344	3,248,501	9,661	3,258,162
Net Income	-	-	-	73,014	-	-	-	73,014	350	73,364
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	39	39	39	-	39
Other comprehensive loss, net of tax	-	-	-	-	(1,450)	1,102	(348)	(348)	-	(348)
Exercise of stock options	952	-	-	-	-	-	-	952	-	952
Common share dividends	-	-	-	(20,297)	-	-	-	(20,297)	(462)	(20,759)
Put option – non-controlling interests	-	-	(1,442)	-	-	-	-	(1,442)	-	(1,442)
Acquisition of non-controlling interests	-	-	4,242	(3,083)	-	-	-	1,159	(1,159)	-
Stock-based compensation	-	-	1,590	-	-	-	-	1,590	-	1,590
Transfer relating to the exercise of stock options	247	-	(247)	-	-	-	-	-	-	-
Balance, end of period	512,172	147,360	(15,034)	2,656,635	3,697	(1,662)	2,035	3,303,168	8,390	3,311,558

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July 31, 2024

($000s) Three-month period ended

	Preferred Shares	Common Shares	Other equity instruments	Contributed deficit	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
						Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning of period	181,411	495,707	-	(24,811)	2,359,116	34,867	(42,671)	(7,804)	3,003,619	12,189	3,015,808
Net Income	-	-	-	-	111,889	-	-	-	111,889	265	112,154
Realized loss on sale of shares, net of tax	-	-	-	-	(18,975)	-	-	-	(18,975)	-	(18,975)
Transfer of AOCI losses to retained earnings, net of tax	-	-	-	-	-	-	18,618	18,618	18,618	-	18,618
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	-	1,056	1,056	1,056	-	1,056
Other comprehensive loss, net of tax	-	-	-	-	-	(19,044)	3,210	(15,834)	(15,834)	-	(15,834)
Exercise of stock options	-	5,005	-	-	-	-	-	-	5,005	-	5,005
Limited recourse capital notes issued	-	-	150,000	-	-	-	-	-	150,000	-	150,000
Issuance cost, net of tax	-	-	(2,192)	-	-	-	-	-	(2,192)	-	(2,192)
Dividends:
Preferred shares	-	-	-	-	(2,351)	-	-	-	(2,351)	-	(2,351)
Common shares	-	-	-	-	(17,253)	-	-	-	(17,253)	(450)	(17,703)
Put option – non-controlling interests	-	-	-	(1,032)	-	-	-	-	(1,032)	-	(1,032)
Stock-based compensation	-	-	-	924	-	-	-	-	924	-	924
Transfer relating to the exercise of stock options	-	882	-	(882)	-	-	-	-	-	-	-
Balance, end of period	181,411	501,594	147,808	(25,801)	2,432,426	15,823	(19,787)	(3,964)	3,233,474	12,004	3,245,478

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(S000s) Nine-month period ended
July 31, 2025
| | Common Shares | Other equity instruments | Contributed Deficit | Retained Earnings | Accumulated other comprehensive income (loss) | | | Attributable to equity holders | Non-controlling interests | Total |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | Cash Flow Hedges | Financial Instruments at FVOCI | Total | | | |
| Balance, beginning of period | 505,876 | 147,440 | (17,374) | 2,483,309 | 21,617 | (13,062) | 8,555 | 3,127,806 | 10,379 | 3,138,185 |
| Net Income | - | - | - | 270,359 | - | - | - | 270,359 | 1,007 | 271,366 |
| Realized loss on sale of shares, net of tax | - | - | - | (6,377) | - | - | - | (6,377) | - | (6,377) |
| Transfer of AOCI losses to retained earnings, net of tax | - | - | - | - | - | 7,016 | 7,016 | 7,016 | - | 7,016 |
| Transfer of AOCI losses to net income, net of tax | - | - | - | - | - | 133 | 133 | 133 | - | 133 |
| Other comprehensive loss, net of tax | - | - | - | - | (17,920) | 4,251 | (13,669) | (13,669) | - | (13,669) |
| Exercise of stock options | 8,089 | - | - | - | - | - | - | 8,089 | - | 8,089 |
| Common shares repurchased and cancelled | (3,740) | - | - | (24,432) | - | - | - | (28,172) | - | (28,172) |
| Issuance cost, net of tax | - | (80) | - | - | - | - | - | (80) | - | (80) |
| Limited recourse capital notes distributions, net of tax | - | - | - | (4,410) | - | - | - | (4,410) | - | (4,410) |
| Common share dividends | - | - | - | (58,731) | - | - | - | (58,731) | (1,837) | (60,568) |
| Put option – non-controlling interests | - | - | (3,776) | - | - | - | - | (3,776) | - | (3,776) |
| Acquisition of non-controlling interests | - | - | 4,242 | (3,083) | - | - | - | 1,159 | (1,159) | - |
| Stock-based compensation | - | - | 3,821 | - | - | - | - | 3,821 | - | 3,821 |
| Transfer relating to the exercise of stock options | 1,947 | - | (1,947) | - | - | - | - | - | - | - |
| Balance, end of period | 512,172 | 147,360 | (15,034) | 2,656,635 | 3,697 | (1,662) | 2,035 | 3,303,168 | 8,390 | 3,311,558 |

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July 31, 2024

($000s) Nine-month period ended

	Preferred Shares	Common Shares	Other equity instruments	Contributed Surplus (Deficit)	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
						Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning of period	181,411	471,014	-	12,795	2,185,480	43,618	(48,775)	(5,157)	2,845,543	-	2,845,543
NCI on acquisition	-	-	-	-	-	-	-	-	-	12,310	12,310
Net Income	-	-	-	-	321,508	-	-	-	321,508	744	322,252
Realized loss on sale of shares, net of tax	-	-	-	-	(18,975)	-	-	-	(18,975)	-	(18,975)
Transfer of AOCI losses to retained earnings, net of tax	-	-	-	-	-	-	18,618	18,618	18,618	-	18,618
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	-	1,160	1,160	1,160	-	1,160
Other comprehensive loss, net of tax	-	-	-	-	-	(27,795)	9,210	(18,585)	(18,585)	-	(18,585)
Common shares issued		11,000	-	-	-	-	-	-	11,000	-	11,000
Exercise of stock options	-	16,844	-	-	-	-	-	-	16,844	-	16,844
Limited recourse capital notes issued	-	-	150,000	-	-	-	-	-	150,000	-	150,000
Issuance cost, net of tax	-	-	(2,192)	-	-	-	-	-	(2,192)	-	(2,192)
Dividends:
Preferred shares	-	-	-	-	(7,054)	-	-	-	(7,054)	-	(7,054)
Common shares	-	-	-	-	(48,533)	-	-	-	(48,533)	(1,050)	(49,583)
Put option – non-controlling interests	-	-	-	(38,897)	-	-	-	-	(38,897)	-	(38,897)
Stock-based compensation	-	-	-	3,037	-	-	-	-	3,037	-	3,037
Transfer relating to the exercise of stock options	-	2,736	-	(2,736)	-	-	-	-	-	-	-
Balance, end of period	181,411	501,594	147,808	(25,801)	2,432,426	15,823	(19,787)	(3,964)	3,233,474	12,004	3,245,478

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Consolidated statement of cash flows (unaudited)

($000s)	Three months ended		Nine months ended
	July 31, 2025	July 31, 2024	July 31, 2025	July 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	73,364	112,154	271,366	322,252
Adjustments for non-cash items in net income:
Financial instruments at fair value through income	110,533	(14,453)	(67,817)	(3,093)
Amortization of premiums/discount on investments	(692)	(13,393)	(6,275)	(44,422)
Amortization of capital assets and intangible costs	16,844	13,253	49,238	36,373
Provision for credit losses	33,968	21,274	82,880	59,026
Securitization gains	(18,027)	(16,656)	(48,653)	(48,658)
Stock-based compensation	1,590	924	3,821	3,037
Income taxes	27,843	43,241	99,069	120,918
Securitization retained interests	44,691	33,670	126,389	92,304
Changes in operating assets and liabilities:
Restricted cash	(222,094)	(121,048)	(246,698)	(137,001)
Securities purchased under reverse repurchase agreements	150,866	60,377	(689,053)	(430,745)
Loans receivable, net of securitizations	(176,355)	(132,856)	(442,501)	(847,878)
Other assets	(9,003)	(97,507)	(8,922)	(106,038)
Deposits	1,349,617	(924,138)	2,605,032	1,165,004
Securitization liabilities	(1,060,539)	(269,988)	(2,128,524)	407,423
Obligations under repurchase agreements	64,531	-	148,623	(1,128,238)
Funding facilities	(25,064)	963,380	438,350	71,634
Other liabilities	(27,275)	(53,946)	38,124	(12,310)
Income taxes paid	(20,287)	(21,742)	(88,046)	(71,816)
Cash flows from (used in) operating activities	314,511	(417,454)	136,403	(552,228)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common shares	952	5,005	8,089	27,844
Net proceeds from issuance of limited recourse notes	-	147,808	(80)	147,808
Common share repurchased and cancelled	-	-	(28,172)	-
Dividends paid on preferred shares	-	(2,351)	-	(7,054)
Dividends paid on common shares	(20,759)	(17,253)	(60,568)	(48,533)
Distribution to other equity holders	-	-	(4,410)	-
Cash flows (used in) from financing activities	(19,807)	133,209	(85,141)	120,065
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments	(370,789)	(7,896)	(387,208)	(352,319)
Acquisition of subsidiary	-	-	-	(75,483)
Proceeds on sale or redemption of investments	82,864	132,370	242,337	789,016
Net change in Canada Housing Trust re-investment accounts	-	22,050	53,032	69,009
Purchase of capital assets and system development costs	(21,769)	(9,890)	(65,307)	(37,926)
Cash flows (used in) from investing activities	(309,694)	136,634	(157,146)	392,297
Net decrease in cash and cash equivalents	(14,990)	(147,611)	(105,884)	(39,866)
Cash and cash equivalents, beginning of period	500,747	657,219	591,641	549,474
Cash and cash equivalents, end of period	485,757	509,608	485,757	509,608
Supplemental statement of cash flows disclosure:
Interest received	683,755	975,954	2,062,196	2,510,358
Interest paid	(498,078)	(646,530)	(1,325,193)	(1,461,202)
Dividends received	-	521	350	1,634

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About EQB Inc.

EQB Inc. (TSX: EQB) is a leading digital financial services company with $137 billion in combined assets under management and administration (as at July 31, 2025). It offers banking services through Equitable Bank, a wholly owned subsidiary and Canada's seventh largest bank by assets, and wealth management through ACM Advisors, a majority owned subsidiary specializing in alternative assets. As Canada's Challenger Bank™, Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. It leverages technology to deliver exceptional personal and commercial banking experiences and services to over 761,000 customers and more than six million credit union members through its businesses. Through its digital EQ Bank platform (eqbank.ca) its customers have named it one of Canada's top banks on the Forbes World's Best Banks list since 2021.

Please visit eqb.investorroom.com for more details.

Investor contact:
Lemar Persaud
VP and Head of IR
investor_enquiry@eqb.com

Media contact:
Maggie Hall
Director, PR & Communications
maggie.hall@eqb.com

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Cautionary Note Regarding Forward-Looking Statements

Statements made by EQB in the sections of this news release, in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws (forward-looking statements). These statements include, but are not limited to, statements about EQB's objectives, strategies and initiatives, financial performance expectation, statements with respect to EQB's intention to renew and/or make share repurchases under its NCIB, and other statements made herein, whether with respect to EQB's businesses or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "intends", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or other similar expressions of future or conditional verbs. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of EQB to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions including. without limitation global geopolitical risk, uncertainty arising from ongoing United States/Canada tariff concerns and related impacts, business acquisition, legislative and regulatory developments, changes in accounting standards, the nature of our customers and rates of default, and competition as well as those factors discussed under the heading "Risk Management" in EQB's Q3 MD&A and in EQB's documents filed on SEDAR+ at www.sedarplus.ca. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting EQB and the Canadian economy. Although EQB believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by EQB in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its mortgage business, a continuation of the current level of economic uncertainty that affects real estate market conditions, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. EQB does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

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Non-Generally Accepted Accounting Principles (GAAP) Financial Measures and Ratios

In addition to GAAP prescribed measures, this news release references certain non-GAAP measures, including adjusted financial results, that we believe provide useful information to investors regarding EQB’s financial condition and results of operations. Readers are cautioned that non-GAAP measures often do not have any standardized meaning, and therefore, are unlikely to be comparable to similar measures presented by other companies.

Adjustments listed below are presented on a pre-tax basis:

Q3 2025
- $4.0 million fair value adjustment on a covered bond maturity;
- $2.6 million accelerated long-term incentive expense following the former CEO’s passing;
- $0.9 million new office lease related expenses; and
- $2.0 million intangible asset amortization.

Q2 2025
- $3.4 million new office lease related expenses prior to occupancy, and
- $2.0 million intangible asset amortization.

Q3 2024
- $2.7 million non-recurring operational effectiveness expenses and acquisition and integration-related costs associated with Concentra and ACM;
- $2.2 million intangible asset amortization; and
- $1.7 million provision for credit losses due to change in ECL methodology from five to four economic scenarios and associated weights.

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The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. For additional adjusted measures and information regarding non-GAAP financial measures, please refer to the Non-GAAP financial measures and ratios section of this MD&A.

Reconciliation of reported and adjusted financial results	For the three months ended			For the nine months ended
($000s, except share and per share amounts)	31-Jul-25	30-Apr-25	31-Jul-24	31-Jul -25	31-Jul-24
Reported results
Net interest income	250,042	271,059	271,367	784,487	794,715
Non-interest revenue	56,087	44,891	55,871	160,227	147,955
Revenue	306,129	315,950	327,238	944,714	942,670
Non-interest expense	170,954	161,190	150,569	491,399	440,474
Pre-provision pre-tax income(1)	135,175	154,760	176,669	453,315	502,196
Provision for credit loss	33,968	30,234	21,274	82,880	59,026
Income tax expense	27,843	34,234	43,241	99,069	120,918
Net income	73,364	90,292	112,154	271,366	322,252
Net income available to common shareholders	73,014	85,533	109,538	265,949	314,454
Adjustments
Net interest income – covered bond fair value adjustment	4,035	-	-	4,035	-
Non-interest expenses – accelerated incentive expense	(2,594)	-	-	(2,594)	-
Non-interest expenses – new office lease related expenses	(857)	(3,363)	-	(7,009)	-
Non-interest expenses – non-recurring operational effectiveness and acquisition-related costs(2)	-	-	(2,652)	(1,782)	(10,416)
Non-interest expenses – intangible asset amortization	(1,969)	(1,969)	(2,223)	(5,907)	(7,219)
Provision for credit loss – equipment financing	-	-	-	(5,018)	-
Provision for credit loss – ECL methodology change and weights	-	-	(1,698)	-	(1,698)
Pre-tax adjustments	9,455	5,332	6,573	26,345	19,333
Income tax expense – tax impact on above adjustments(3)	2,561	1,414	1,543	7,014	5,009
Post-tax adjustments – net income	6,894	3,918	5,030	19,331	14,324
Adjustments attributed to minority interests	(230)	(259)	(310)	(750)	(624)
Post-tax adjustments – net income to common shareholders	6,664	3,659	4,720	18,581	13,700
Adjusted results
Net interest income	254,077	271,059	271,367	788,522	794,715
Non-interest revenue	56,087	44,891	55,871	160,227	147,955
Revenue	310,164	315,950	327,238	948,749	942,670
Non-interest expense	165,534	155,858	145,694	474,107	422,839
Pre-provision pre-tax income(1)	144,630	160,092	181,544	474,642	519,831
Provision for credit loss	33,968	30,234	19,576	77,862	57,328
Income tax expenses(3)	30,404	35,649	44,784	106,083	125,927
Net income	80,258	94,209	117,184	290,697	336,576
Net income available to common shareholders	79,678	89,190	114,258	284,530	328,154
Diluted earnings per share
Weighted average diluted common shares outstanding	38,519,991	38,662,002	38,606,268	38,654,423	38,490,651
Diluted earnings per share – reported	1.90	2.21	2.84	6.88	8.17
Diluted earnings per share – adjusted	2.07	2.31	2.96	7.36	8.53
Diluted earnings per share – adjustment impact	0.17	0.10	0.12	0.48	0.36

(1) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section.
(2) Includes non-recurring operational effectiveness and acquisition and integration-related costs associated with Concentra Bank and ACM.
(3) Income tax expense associated with non-GAAP adjustment was calculated based on the statutory tax rate applicable for that period.

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Other non-GAAP financial measures and ratios:

• Adjusted return on equity (ROE) is calculated on an annualized basis and is defined as adjusted net income available to common shareholders as a percentage of weighted average common shareholders' equity (reported) outstanding during the period.
• Assets under administration (AUA): is sum of (1) assets over which EQB’s subsidiaries have been named as trustee, custodian, executor, administrator, or other similar role; (2) loans held by credit unions for which EQB’s subsidiaries act as servicer.
• Assets under management (AUM): is the sum of total balance sheet assets, loan principal derecognized but still managed by EQB, and assets managed on behalf on investors.
• Loans under management (LUM): is the sum of loan principal reported on the consolidated balance sheet and loan principal derecognized but still managed by EQB.
• Net interest margin (NIM): this profitability measure is calculated on an annualized basis by dividing net interest income by the average total interest earning assets for the period.
• Pre-provision pre-tax income (PPPT): this is the difference between revenue and non-interest expenses.
• Total loan assets: this is calculated on a gross basis (prior to allowance for credit losses) as the sum of both Loans – Personal and Loans – Commercial on the balance sheet and adding their associated allowance for credit losses.

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